Transcript

00:00:02

>> $10 coffee, that's what Starbucks' co-founder, Howard Schultz, wants you to drink at the new Starbucks' Reserve brand. What do you get? Well, coffee, but look where you'd be drinking it. When he swaps his CEO role for Executive Chairman in April, Schultz will be pushing these big roastery and tasting rooms in 30 cities around the world.

00:00:22

That's in addition to 1,000 smaller scale Reserve brand stores, and 1 in 5 Starbucks cafes will get coffee bars in them as well. Reuters correspondent Tim Baysinger visited one on Manhattan's Upper East Side.>> It definitely feels like a Starbucks, but a definitely more upscale version of a Starbucks.

00:00:41

There's this bar there where the barista kinda acts like a bartender. People are sitting down. They are serving all these kinds of specially made coffee that sometimes can take as long as ten minutes to make. And they're explaining to you everything that they're doing. It's designed to keep the customers in the store for as long as possible.

00:00:58

So it's more for the weekend crowd than say, like the morning rush.>> The sweeping roastery and tasting room concept made its debut on Starbucks' home turf, Seattle. Price tag for the industrial chic space and design, $20 million. Some analysts say it's bit cheery invented image from your parents coffeehouse to one that appeals to millennials more likely to frequent a Blue Bottle or Intelligentsia.

00:01:23

Both are threats to the high end that Starbucks was first to dominate.